After the pandemic resulted in a spike in demand for retail sales of cooking ingredients and meals in Western Europe in 2020, the volume performance was hit by high inflation in 2022 and 2023. This has been favouring growing shares for discounters and private label in a number of markets as rising costs were impacting consumers’ spending power. As inflation eases, growth is expected to be positive in both volume and real value terms over the forecast period.
Delivery
This report comes in PPT.
With inflation biting into consumers’ spending budgets in the latter part of the review period, this was playing into the hands of the retailers’ private label lines. The private label retail value sales share was rising in most countries, accounting for almost half the market in markets like the UK and Spain. In products that lend themselves particularly well to private label, eg chilled ready meals, these retailers’ lines account for almost 100% of sales in some countries.
Meal kits recorded the most dynamic growth over 2018-2023, powered in no small part by leading player HelloFresh. Meal kits is a product category that is able to meet several prevailing trends and preferences, including offering convenience for consumers with busy lifestyles, health and wellness, and curiosity about new recipes and cuisines from around the world.
While e-commerce made share gains in all countries during the pandemic, the UK stands out as the most-advanced market in terms of online sales, where internet retailing accounted for 27% of its cooking ingredients and meals retail value in 2023. The country’s strong modern grocery retail chains have been the driving force behind this trend, with most offering home delivery services that long pre-dated any COVID-19 restrictions.
Second tranche of HFSS regulations due in the UK in October 2025
The second set of HFSS regulations are set to be introduced in the UK in October 2025. These will include limitations on multibuy offers and a ban on advertising both online and on television. This will likely continue to push brand owners to reformulate any products high in fat, salt or sugar ahead of the upcoming legislation.
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